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Home Depot Inc, the world's largest home improvement retailer, on Tuesday posted better-than-expected second-quarter profit as sales to professional contractors expanded, but softened its sales and earnings growth outlook for the year as the US housing market cools.
Citing "mixed economic signals" and a "challenging" second half, the company said profit and sales should rise at the low end of its previous forecast. Results "suggest that a slower housing environment and increased competition are beginning to take their toll," UBS analyst Brian Nagel said in an early research note.

Copyright Reuters, 2006

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